What are the objectives behind China's promotion and development of the Belt and Road Initiative? Answering this question is the main purpose of this essay which is based on an international political economy (IPE) approach to bridge geoeconomic and geopolitical perspectives
The ancient Silk Road served as vast trade network between China, other Asian countries, Europe and the Middle East for more than 2,000 years. By launching the Belt and Road Initiative (BRI) - comprising the Silk Road Economic Belt, the 21st Century Maritime Silk Road and a Digital Silk Road - China has revived this concept in 2013.
While some scholars and politicians welcome the BRI as China’s contribution to international public goods and international development, others reject it claiming that its objectives are not transparent or, that it is a tool for China to leverage its massive economic resources for geostrategic interests and to facilitate business for its state-owned enterprises. Thus, is the BRI´s main objective to undermine the US-led world order? Is it driven by altruism aimed on facilitating economic growth in less developed countries? Is it the Chinese way to deal with domestic economy challenges? Or is it just an empty slogan?
Table of Contents
1. Introduction
2. Domestic objectives
3. Global objectives
4. Conclusion
Objectives and Topics
This essay explores the underlying objectives of China’s Belt and Road Initiative (BRI) by employing an international political economy (IPE) approach. It seeks to determine whether the initiative is primarily driven by economic necessities, such as managing domestic overcapacity and trade promotion, or by broader geopolitical strategies aimed at reshaping the global order and enhancing China’s soft power.
- Analysis of domestic drivers, including trade facilitation and economic development.
- Examination of strategies to address industrial overcapacity through foreign infrastructure projects.
- Evaluation of geopolitical ambitions and soft-balancing against US dominance.
- Assessment of the internationalization of the Renminbi (RMB) within the BRI framework.
- Investigation into the development of alternative multilateral institutions like the AIIB.
Excerpt from the Book
Solving the capital accumulation problem
The first argument is that the BRI is designed to develop the economies of China's emerging neighbour states to boost both demand for Chinese consumer products and infrastructure services. The necessity for China to penetrate foreign markets and to overcome the structural limitations of its 'capital accumulation regime' stems largely from three aspects:
First, saturated export markets in developed economies and a (possible) 'underconsumption crisis'; second, insufficient domestic demand and third, overproduction in several Chinese industries.
Chinese industries, such as steel, cement, or solar energy, were used to substantial government investments in domestic infrastructure projects and have accumulated massive overcapacities over the last years, but now risk sitting idle. China's steel production capacity more than doubled between 2006 – 2015 representing nearly half of global capacity. But in 2016 almost 50 per cent of steel mills were operating at a loss.
Summary of Chapters
Introduction: Provides the background of the Belt and Road Initiative and outlines the essay's goal to bridge geoeconomic and geopolitical perspectives on China's intentions.
Domestic objectives: Discusses how the BRI serves to facilitate trade, resolve internal capital accumulation issues, and support the development of China’s Western regions.
Global objectives: Analyzes the BRI's role in soft-balancing against US dominance, strengthening China's soft power, and promoting the internationalization of the Renminbi.
Conclusion: Summarizes that the BRI is a multifaceted tool driven by both domestic economic challenges and a desire for a more balanced global order.
Keywords
Belt and Road Initiative, BRI, China, International Political Economy, IPE, Geopolitics, Geoeconomics, Infrastructure, Overcapacity, Global Governance, Soft Power, Renminbi, Multilateralism, US-China relations, Trade.
Frequently Asked Questions
What is the primary focus of this essay?
The essay examines the motivations and objectives behind China's promotion and development of the Belt and Road Initiative from an international political economy perspective.
What are the core thematic areas discussed in the work?
The work covers domestic economic drivers such as trade facilitation and overcapacity, as well as global strategic goals including geopolitical influence and institutional restructuring.
What is the central research question?
The core question is: What are the objectives behind China's promotion and development of the Belt and Road Initiative?
Which theoretical approach is applied in this study?
The author uses an international political economy (IPE) approach to connect geoeconomic and geopolitical perspectives.
What does the main body of the text cover?
It covers specific domestic objectives like capital accumulation and regional development, and global objectives such as soft-balancing against the US and the promotion of the Renminbi.
Which keywords define this research?
Key terms include Belt and Road Initiative, geopolitical competition, soft power, capital accumulation, and global governance reform.
How does the BRI help China solve domestic economic problems?
The BRI allows China to shift excess production capacities, such as steel and cement, into large-scale foreign infrastructure projects, thereby finding new demand for Chinese industries.
Why does the author argue against comparing the BRI to the Marshall Plan?
The author highlights that while some scholars make the comparison, the Chinese government rejects it, and the context of contemporary global economic integration differs significantly from the post-WWII era.
In what way does the BRI contribute to the internationalization of the Renminbi?
By financing BRI projects in RMB and providing digital infrastructure via the Digital Silk Road, China encourages firms and partners to utilize the Chinese currency, thereby boosting its global status.
How does the construction of infrastructure under the BRI increase regional influence?
The construction of key infrastructure, such as ports, serves dual purposes: it absorbs industrial overcapacity and provides strategic hubs that increase China’s regional influence and security capabilities.
- Citation du texte
- Sandra Schorrer (Auteur), 2020, China's objectives with the Belt and Road Initiative, Munich, GRIN Verlag, https://www.grin.com/document/968102
